Setting up a Business in the USA 1 - Understanding the Geography

The USA is, as we all know, fairly big. To be more precise the USA covers nearly 4million sq miles, which makes it 40 times larger than the UK (or 473 times the size of Wales...!). In fact 11 of the 50 states are bigger than the UK in terms of area - which gives you a lot of ground to cover. And there are a lot of people in the USA too - 300 million of them, making it the 3rd largest population in the world, after China and India.

But the thing to bear in mind, when considering setting up in the USA is while there are a lot of people in a lot of land, there is an awful lot of space. Even when you take into consideration that there is enough land in Alaska for each of its residents to have a square mile each, the USA is a relatively empty place, made up of areas of high density with huge distances between them. This in turn means that ,while there are federal laws and governance in place, in reality a lot of the administrative and legislative functions are handled state by state.

So what does this mean for you if you are considering setting up a business to distribute in the USA? Well, it means that you might be better off thinking of the USA more like a collection of small (and not so small) countries (a bit like the EU) rather than a single homogenous country. You can get away with having a central hub in Lyon if you want to cover all of France, but if you want your reach to extend to Turkey, Norway, Portugal and Poland, you might need to think again. Likewise a base on the West Coast of the USA is great… for covering the West Coast, but less useful if you want to reach those in the Central Time Zone and almost useless if you want to get to the East Coast - The distance between New York and LA is only 2/3 of the distance between New York and London.

And speaking of time zones - there are 4 of them on 'mainland' USA, not including Alaska and the various islands. So when it's midday in New York it's still 8am in California (and 5pm in the UK) which means if you want to deal with people all across the country, you might need to get a few extra clocks for the wall - and be prepared to work later or earlier than normal.

So, my top tip when understanding the geography of the USA is to focus on the 'United States' part first and 'of America' next. And remember, you're not in Kansas anymore, Toto....

Article copyright John Cave 2008

Meet me at the "Focus on Doing Business in the USA Event" 13th March 2008 in association with the British American Business Council

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Maps from: Map of the USA - Visit us for more maps of the USA including all the states.